Now, let’s say the federal government was going to give you $10k or $20k, depending on your type of mortgage, to help reduce you loan amount. You owed $100k, now you owe $90k. You still have your monthly payment, though, so, you don’t actually have $10k/$20 (regular student loan/pell grant loan) to spend, right? That money is never in your hands, right?
A third of student borrowers spent money they thought would be forgiven: poll
More than a third of student loan borrowers spent money they otherwise would not have when they believed a portion of their debt would be forgiven by the Biden administration, according to a new poll.
Most borrowers surveyed by Intellingent.com were confident they would receive some student debt relief as part of the Biden administration’s plan to forgive at least $10,000 for federal borrowers and up to $20,000 for those who received a federal Pell Grant while in school.
The Supreme Court struck down the president’s forgiveness plan at the end of June.
You mean Brandon’s bribery for votes scheme, which would be paid for on the backs of the working and middle class for upper middle class and rich folks
The survey conducted from July 6 to July 10 measured the responses of 977 respondents who qualified for Biden’s student loan forgiveness program
Among borrowers who spent additional money expecting some debt relief, 9 percent spent between $5,000 and $7,501 extra, while another 17 percent spent $5,000 more than they would have had they not expected forgiveness, the poll found.
Borrowers used what they believed would amount to extra money in their pockets on a range of items, though 37 percent said they paid off other debts. Others used the funds on home repairs and rent payments. The survey conducted from July 6 to July 10 measured the responses of 977 respondents who qualified for Biden’s student loan forgiveness program
About 20 percent of borrowers polled said they spent the money on vacation, while fewer than 10 percent said they spent it on alcohol and drugs or gambling.
So, they spent money they didn’t know if they would actually get it, and wouldn’t actually get it if Brandon’s plan was allowed to stand because it would go directly to the loan companies on other things, including vacations and other debt, which is why they’re in this bad situation in the first place. They would not have had extra money now, just maybe in the future.
Read: Third Of Student Borrowers Spent Money They Didn’t Have, Expecting Loan Relief »